Digital transformation: New thinking of business models

Digitization changes our world at a rapid pace. For small and midsize companies (SMEs), digital transformation is one of the biggest challenges.

However, also an immense opportunity to set up future-oriented. But what does it mean to think new business models in the course of digitalization?

In this article we highlight the central aspects and show how the Digital Transformation can sustainably strengthen SMEs.

Why digital transformation is crucial for SMEs

Digitization changes our world at a rapid pace.

When planning Digital transformation: New thinking of business models from idea to delivery, AI & Machine Learning, Cost Calculator: AI Development sowie Discover solutions offer practical next steps on our site.

The digital transformation is far more than just the introduction of new technologies. It is a core change that affects all areas of a company.

From internal processes to corporate culture to interaction with customers. Large corporations have already firmly integrated digitization into their strategies and set new standards.

This are also expected by SMEs. Anyone who misses the connection here risks falling back in the competition.

At the same time, digitalization offers enormous potential for increasing efficiency and reducing costs.

By automating routine tasks, improving supply chains and using data review, SMEs can use their resources more clearly and significantly increase their market strength.

New business models through digital technologies

Short: Digitization enables the development of completely new business models.

Digitization enables the development of completely new business models. Existing products and services can be expanded by digital components or replaced by new, purely digital offers.

Here are some examples:

• Platform models: Instead of selling products directly, companies can create platforms that bring suppliers and demanders together.
• Subscription models: Instead of a one-time purchase, customers pay a regular fee for using a product or service.
• Data-driven models: Companies use the collected data to create tailored offers or develop new services.

Overview of challenges and options

The digital transformation is not a self-tracker. SMEs face a number of challenges that need to be overcome.

At the same time, however, there are also major options for the future.

Challenges	Options
High investment costs	Efficiency increase and cost reduction
Lack of skilled workers	Developing new markets and customer groups
Data security and cyber risks	Development of new products and services
Change in corporate culture	Strengthen customer loyalty through tailored offers
Complexity of technologies	Improvement of market strength

The role of corporate culture

One of the biggest obstacles in digital transformation is often not the technology itself, but the Un

References and further reading

The following separate references complement the topics in this article:

• Bitkom – German digital industry association.
• German Federal Office for Information Security (BSI).
• European Commission – Digital strategy.
• MDN Web Docs (Mozilla)
• W3C – World Wide Web Consortium.

"APIs are the backbone of modern systems; stabilise contracts early or pay twice in integration work later."

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Frequently Asked Questions (FAQ)

What is this article about: “Digital transformation: New thinking of business models”?

Here we cover Digital transformation. New thinking of business models — focused on architecture, process, and business outcomes. In short: Digitization changes our world at a rapid pace.

For small and midsize companies (SMEs), digital transformation is one of the biggest challenges. However, also an imm...

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In a digital strategy, prioritize stable core processes first, then extensions. See also professional software development and consulting.

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